Iron Ore prices decrease amongst futures losses
China’s ferrous futures fluctuated on Friday and was ended on a downward trend. This, plus the weekend pause, dragged down spot iron ore trading activity and prices. A May-arrival Capesize cargo of 62% Fe Pilbara Blend fines was offered as low as $84 per MT CFR China. It did not lead to a transaction, however, despite the offer price being lower than some market participant expectations.
Separately, China imported 83.08 million MTs of iron ore in February, down 1.4% year on year and 9% lower than in January, according to preliminary Chinese customs data released on Friday. Imports totaled 174.4 million MTs in the first two months of the year, falling 5.9% compared with the first two months of 2018. Iron ore exports from Western Australia’s Port Hedland rose 1.6% year on year in February to 39.14 million MTs, although this was down 6.3% from January, according to the Pilbara Ports Authority. Cargoes bound for China accounted for 33.46 million MTs in February, up 6.9% year on year but down 4.8% from January.
The price movements were based on the visible market activity detailed below, which was included in the index calculation according to the published methodology. For the calculation of the indices, judgment was applied to carry over data in today’s indices due to low liquidity in the 24-hour pricing window, corresponding with published fall-back measures. No data was discarded in the calculation of these indices. Any data received under Data Submitter Agreements or subject to a confidentiality request will not be published.
QUOTE OF THE DAY
“Some steelmakers in China have started to look for low-alumina iron ore to blend with cheaper materials with higher content of this impurity. Meanwhile, they have been less sensitive about silica [levels], partly due to relatively low coke costs,” a trader in Beijing said.
Report By: Mehrdad Najafi
